Transforming a property into a HMO can provide fantastic returns for a landlord. It is important to be aware that the move does increase the workload though and that everything must be done correctly to avoid penalties. Make sure you are aware of your obligations, costs, and the legal requirements. It may also be wise to get help from a professional team such as the best provider of HMO management in Portsmouth; T1Property.
When you invest in a HMO conversion or a property that is already operating as one there are a number of important things to keep in mind. We will go over a few of them here.
Remember the importance of size
With a HMO you need to ensure the rooms are large enough that people want to let them. Box rooms are unlikely to draw tenants and could result in lost income. Try to get the layout of the property right so that each room is a good size and comfortable.
The larger a HMO is the more pressure, both in terms of gaining planning permission and actually arranging lets. Too few tenants though and you may not make great profits because utilities won’t be shared as widely.
Just like with every kind of property the location is absolutely crucial for a HMO. Choose a good property that is within walking distance of local amenities such as transport links and town centres and you should see higher demand.
Never mix tenancy types
A HMO tenant could be a student, a professional, a family, or a LHA. It is wise to have the same type of tenants in a property; if you try to mix them their different requirements can cause disagreements and issues with others living in the property. The mix can also cause management challenges.
Keep on top of cleaning
Tenants will always be happier and more comfortable if you stay on top of maintenance. Arranging for a cleaner to visit the property every two weeks or so will keep shared areas clean and can reduce the risk of disputes between tenants. The cleaner can also make sure that the property is being properly looked after and perform routine checks for you.
Quality will increase incomes
High quality HMOs with en-suite rooms, nice flooring and good furnishings will always be in the most demand, even if the prices are slightly higher. These rooms will also tend to attract higher quality tenants.
If you would like any help from the best team for HMO management in Portsmouth please get in touch with T1Property.